Enter the initial price paid for a stock and the current dividend into the calculator to determine the yield on cost.

## Yield on Cost Formula

The following formula is used to calculate the yield on cost.

YOC = CD/ IC *100

- Where YOC is the yield on cost (%)
- CD is the current dividend ($)
- IC is the initial cost of the stock ($)

## Yield on Cost Definition

A yield on cost is defined as the ratio of the current dividend of a stock to it’s initial purchase price. In other words a return on a stock with respect to it’s dividend.

## Yield on Cost Example

How to calculate yield on cost?

**First, determine the current dividend.**Calculate the current dividend per share.

**Next, determine the purchase price.**Calculate the initial purchase price of the stock.

**Finally, calculate the yield on cost.**Calculate the yield on cost using the formula above.

## FAQ

**What is yield on cost?**

Yield on cost is a measure of the dividend yield based on the initial purchase price of a stock.